Corporate Registration: Upcoming Changes to Verify Premises for Business Head Office Locations

The Department of Business Development (DBD) is set to introduce a new regulation requiring entrepreneurs to provide evidence of the right to use a premise as their business registered address when registering a new partnership or company, or when changing the registered address of an existing entity. Currently, the DBD only requires a map, address, and house code number (13-digit numbers) of the proposed head office location without verifying ownership or usage rights. However, this lenient approach is expected to change soon.

Reasons Behind the Regulatory Changes:

The upcoming changes aim to achieve several key objectives:

1. Support Economic Analysis and Planning: Accurate and reliable data on business locations is essential for analyzing economic trends. This information will help both public and private sectors make informed decisions, formulate policies, and plan strategically.
2. Drive Economic Growth: Transparent and credible business registration practices will enhance trust in Thailand’s business environment, making it more attractive to investors and contributing to national economic development.
3. Prevent Fraud: The new requirements will deter fraudulent activities, such as unauthorized use of properties as business addresses, thereby protecting property owners and stakeholders from misuse.

Key Provisions of the New Regulation:

Under the new regulation, entrepreneurs will be required to submit the following documents to verify the right to use a premise as a head office:

1. Letter of Consent: A written consent from the owner or authorized user of the premises allowing the business to use the location as its registered office.
2. House Registration Document: A copy of the house registration showing that the consent giver is the head of the household.
3. Lease Agreement: A copy of the lease agreement if the consent giver is the lessee of the property.
4. Other Ownership Documents: Any other document proving that the consent giver owns or has legal rights to the property.

These requirements are not entirely new in Thailand. For instance, the Revenue Department has long mandated similar documentation for value-added tax registration purposes. However, the DBD has been more relaxed until the enforcement of this new regulation.

When Will the New Regulation Take Effect?

The new regulation is scheduled to take effect starting March 1^st, 2025. Businesses and entrepreneurs should prepare to comply with these requirements to avoid any disruption during the registration process.

Implications for Entrepreneurs and Stakeholders:

Entrepreneurs, directors, managing partners, and other relevant parties should take note of these upcoming changes and prepare accordingly. Ensuring compliance with the new requirements will not only prevent delays in the registration process but also contribute to greater transparency and credibility in the business ecosystem. By implementing these measures, the DBD aims to modernize corporate registration practices, align them with international standards, and create a more robust framework for supporting Thailand’s economic growth while safeguarding property rights.